Image: Shoaib Quraishi/Twitter
Tesla smashes competitors with another price cut. The move paves the way for Model Y to become the best-selling SUV in the US in 2023, dethroning Toyota RAV4.
Tesla slashed its car prices in the US again last week, horrifying competitors. They still have not had time to catch their breath after the price cuts launched by Tesla in January, and the new round does not bode well for them. In 2022, with 252,000 sales, Tesla Model Y was the second best-selling SUV in the US. The electric vehicle was second only to Toyota RAV4, which sold 399,941 units. It is worth noting that the base Model Y is twice the price of RAV4.
However, with new price cuts, Tesla Model Y has become even more attractive to a wider range of consumers. Since January, the company has reduced the starting price by about 24%. In addition, Model Y became eligible for $7,500 in federal tax credits. At the moment, Model Y, with a range of 279 miles, can be purchased for 10% less than the average price of a new car sold in the US, according to BNN Bloomberg.
A price reduction of 24% in three months is almost unprecedented for a car that is in mass production. This may be partially comparable to the Ford Model T, whose price was greatly reduced in the 1920s after the company launched a moving assembly line.
Model Y now starts at $49,990, or $42,490 for those eligible for the federal tax credit. That is about $5,300 less than the average new car price in the US in March. Of course, this is a huge blow to all competitors, and first of all to those who continue to produce cars with internal combustion engines. At the moment, the situation looks like Tesla Model Y will become the best-selling SUV in the US in 2023.
In addition, Model Y is sure to improve its position in the overall ranking of the best-selling cars in the US, as the company's production capacity in the country continues to grow. In 2022, the car ranked 6th, selling 252,000 units. Model Y registered a 32.4% increase in sales, while all the rest of the top 10 registered a decline. If the trend continues, we should expect interesting results from auto sales in the US, where Model Y has good upside potential.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.